Big gains for banks take stocks higher

Equities rose, led by gains in financials and industrial companies, after Morgan Stanley earnings beat forecasts, helping to offset a slide in tech stalwarts such as Apple and Microsoft. The peso gained after President Donald Trump said he may prioritize a bilateral trade deal with Mexico.

With Morgan Stanley’s results Wednesday, the six largest U.S. banks have reported second-quarter earnings that mostly surpassed estimates, helping to push the S&P 500 Financials Index 2.8 percent higher since Friday. The dollar held onto gains as Federal Reserve Chairman Jerome Powell delivered an upbeat assessment of the U.S. economy during his second day of testimony to Congress.

“Banks are leading the way today as they did the past couple days,” Lindsey Bell, an investment strategist at CFRA, said by phone. “We’re actually seeing stocks respond very strongly to good earnings beats.”

The U.S. and Mexico are “getting closer” to reaching a trade deal, and the administration may advance separate talks with Canada later, Trump told reporters at the start of a cabinet meeting in Washington on Wednesday. Trump said earlier this year he may break up talks for a new North American Free Trade Agreement into separate tracks with Canada and Mexico.

Crude bounced between gains and losses as investors assessed conflicting supplyand-demand signals in the world’s biggest economy.

Elsewhere, Bitcoin extended its biggest three-day rally this year, earlier climbing above $7,500.

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